CA Reports First Quarter Fiscal Year 2007 Results

Announces Cost Reduction Plan Expected to Yield
Approximately $200 Million in Annualized Savings

Will Initiate First Phase of $2 Billion Stock Repurchase Program
With $1 Billion Tender Offer

Company Will Hold Webcast at 5 p.m. ET

ISLANDIA, N.Y., Aug. 14 /PRNewswire-FirstCall/ -- CA (NYSE: CA), one of
the world's largest management software companies, today reported financial
results for its first quarter of fiscal year 2007, ended June 30, 2006. The
Company also filed its Quarterly Report on Form 10-Q with the Securities and
Exchange Commission (SEC).

* Operating earnings per share is a non-GAAP financial measure, as noted
in the discussion of non-GAAP results below. A reconciliation of GAAP
net income to non-GAAP net income is included in the tables following
this press release.

"We continue to focus on building and integrating our solutions portfolio
to meet the needs of customers and we are encouraged by their positive
reaction to our Enterprise IT Management (EITM) vision," said John Swainson,
CA's president and chief executive officer. "However, we are not satisfied
with our cost structure and we are implementing an expense reduction plan to
improve the Company's efficiency and competitive position. These are the first
steps in a long-term program to achieve a best-of-breed cost structure."

First Quarter Results

Revenue for the first quarter was $956 million, an increase of 3 percent
over the $927 million reported in the similar period last year. The increase
in revenue was primarily attributed to growth in subscription and professional
services revenue.

Subscription revenue for the first quarter was $739 million, an increase
of 5 percent over the $702 million reported in the first quarter of last year.
Subscription revenue accounted for 77 percent of total revenue in the quarter,
compared to 76 percent in the first quarter of fiscal year 2006.

Total product and services bookings in the first quarter were
$558 million, up 16 percent from the $480 million reported in the same period
a year ago. Direct product bookings grew 14 percent, to $384 million. Indirect
bookings grew 4 percent to $72 million.

Total expenses for the first quarter were $905 million, up 9 percent,
compared to the $827 million reported in the same period last year. The
increase in expenses was driven by higher personnel costs primarily resulting
from recent acquisitions, increased cost of professional services associated
with higher revenues, greater commissions, royalties and bonuses expense due
to acquisition-related retention payments and an increase in the number of
non-sales individuals compensated through annual incentive compensation plans
and charges associated with the Company's 2006 restructuring plan.

The Company recorded GAAP net income of $35 million for the first quarter,
or $0.06 per diluted common share, compared to net income of $97 million, or
$0.16 per diluted common share, in the prior year comparable period.

The Company reported non-GAAP net income of $104 million for the first
quarter, or $0.17 per diluted common share, compared to $136 million, or
$0.22 per diluted common share a year earlier.

For the first quarter, CA reported a use of cash flow from operations of
$46 million, compared to $93 million in cash flow generated from operations
reported in the prior year period. The decline in cash flow from operations
was the result of increased disbursements to vendors associated with a
concerted effort to reduce the Company's payable cycle, 401(k) contributions
not pre-funded in fiscal year 2006 and increased commission payments related
to the fourth quarter of fiscal year 2006.

Cost Reduction and Restructuring Plan

CA also announced a fiscal year 2007 cost reduction and restructuring plan
designed to significantly improve the Company's expense structure and increase
its competitiveness. The plan's objectives include a workforce reduction of
approximately 1,700 positions, including 300 positions associated with
consolidated joint ventures, and global facilities consolidations and other
cost reduction initiatives, which CA expects to deliver about $200 million in
annualized savings when completed in late fiscal year 2008.

The Company expects to incur pre-tax restructuring charges of
approximately $200 million associated with the workforce reductions and
facilities consolidations, with the majority of these charges to be incurred
over the next two quarters. The Company also expects to implement other
programs over the remainder of its fiscal year to further reduce costs
throughout the organization including tighter control of travel and a
reduction in the use of consultants.

The Company estimates that approximately half of the workforce reductions
will take place in North America.

"CA's senior management is focused on making the Company's cost structure
competitive with that of its peers and aligning it with CA's strategic market
opportunities and initiatives," said Michael Christenson, CA's chief operating
officer. "The initiative we announced today reflects our ongoing commitment to
improve the efficiency of our operations, reduce our operating expenses,
improve our rate of return on invested capital and deliver a stronger bottom-
line performance."

Capital Structure

The balance of cash, cash equivalents and marketable securities at
June 30, 2006 was $1.522 billion. With $1.811 billion in total debt
outstanding, the Company has a net debt position of approximately
$289 million.

Repurchase Program

The Company expects to commence the first phase of its $2 billion stock
repurchase program through a tender offer that will price and launch this
week. CA plans to repurchase $1 billion in common stock in the first phase
through a combination of cash on hand and bank financing and will provide
further information when it commences the tender offer.

CA is considering various options to execute the second phase of the
program and will provide further details when appropriate. The Company expects
to complete the full $2 billion share repurchase plan by the end of fiscal
year 2007.

During the quarter, the Company repurchased approximately 7 million shares
of its common stock at an aggregate cost of approximately $157 million.

Outlook for Fiscal Year 2007

On June 29, 2006, the Company provided a full-year outlook for total
revenue of $3.9 billion, GAAP earnings per share of 44 cents, non-GAAP
earnings per share of 83 cents, and cash flow from operations of $1.3 billion.
The outlook has not been adjusted to reflect the $2 billion common stock
repurchase plan for fiscal year 2007 or the impact of any related financing
activities. The outlook also assumes that the Company will take steps to
achieve certain cost savings, including the fiscal year 2007 restructuring
plan announced today. These steps will have related, non-operating costs that
will have a negative effect on GAAP earnings per share and cash flows, which
have not been reflected in the June 29, 2006 outlook as the timing of the
costs and related payments has not yet been determined. The Company will
quantify the effect of these actions on its full-year outlook and adjust
guidance accordingly on its second quarter earnings conference call.

Webcast

This press release and the accompanying tables should be read in
conjunction with additional content that is available on the Company's
website, including a supplemental financial package, as well as a webcast that
the Company will host at 5 p.m. ET today to discuss its unaudited first
quarter results. The webcast will be archived on the website. Individuals can
access the webcast, as well as this press release and supplemental financial
information, at http://ca.com/invest or listen to the call at (800) 729-6829.
The international participant number is (706) 679-5227.

(Logo: http://www.newscom.com/cgi-bin/prnh/20021111/CALOGO )

About CA

CA (NYSE: CA), one of the world's largest information technology (IT)
management software companies, unifies and simplifies the management of
enterprise-wide IT. Founded in 1976, CA is headquartered in Islandia, N.Y.,
and serves customers in more than 140 countries. For more information, please
visit http://ca.com.

Non-GAAP Financial Measures

This press release includes financial measures for per share earnings and
cash flows that exclude the impact of certain items and therefore have not
been calculated in accordance with U.S. generally accepted accounting
principles (GAAP). Non-GAAP "operating" earnings per share excludes the
following items: non-cash amortization of acquired technology and other
intangibles, in process research and development charges, the government
investigation and class settlement charges, restructuring and other charges,
and the tax resulting from the repatriation of approximately $584 million of
foreign cash and interest on dilutive convertible bonds (the convertible
shares, rather than the interest, are more dilutive, thus the interest is
added back and the shares increased to calculate non-GAAP operating earnings).
Non-GAAP taxes are provided based on the estimated effective annual non-GAAP
tax rate. Non-GAAP adjusted cash flow excludes the following items:
Restitution Fund payments, restructuring payments, and the impact of certain
non-recurring tax payments or tax benefits. These non-GAAP financial measures
may be different from non-GAAP financial measures used by other companies.
Non-GAAP financial measures should not be considered as a substitute for, or
superior to, measures of financial performance prepared in accordance with
GAAP. By excluding these items, non-GAAP financial measures facilitate
management's internal comparisons to the Company's historical operating
results and cash flows, to competitors' operating results and cash flows, and
to estimates made by securities analysts. Management uses these non-GAAP
financial measures internally to evaluate its performance and they are key
variables in determining management incentive compensation. The Company
believes these non-GAAP financial measures are useful to investors in allowing
for greater transparency of supplemental information used by management in its
financial and operational decision-making. In addition, the Company has
historically reported similar non-GAAP financial measures to its investors and
believes that the inclusion of comparative numbers provides consistency in its
financial reporting. Investors are encouraged to review the reconciliation of
the non-GAAP financial measures used in this press release to their most
directly comparable GAAP financial measures, which are attached to this press
release.

Cautionary Statement Regarding Forward-Looking Statements

Certain statements in this communication (such as statements containing
the words "believes," "plans," "anticipates," "expects," "estimates" and
similar expressions) constitute "forward-looking statements." A number of
important factors could cause actual results or events to differ materially
from those indicated by such forward-looking statements, including: the risks
and uncertainties associated with the CA deferred prosecution agreement with
the United States Attorney's Office of the Eastern District, including that CA
could be subject to criminal prosecution or civil penalties if it violates
this agreement; the risks and uncertainties associated with the agreement that
CA entered into with the Securities and Exchange Commission ("SEC"), including
that CA may be subject to criminal prosecution or substantial civil penalties
and fines if it violates this agreement; civil litigation arising out of the
matters that are the subject of the Department of Justice and the SEC
investigations, including shareholder derivative litigation; changes to the
compensation plan of CA's sales organization may lead to outcomes that are not
anticipated or intended as they are implemented, and the commissions plans for
fiscal year 2007, while revised, continue to be reviewed; CA may not
adequately manage and evolve its financial reporting and managerial systems
and processes, including the successful implementation of its enterprise
resource planning software; CA may encounter difficulty in successfully
integrating acquired companies and products into its existing businesses; CA
is subject to intense competition in product and service offerings and pricing
and increased competition is expected in the future; if CA's products do not
remain compatible with ever-changing operating environments, CA could lose
customers and the demand for CA's products and services could decrease;
certain software that CA uses in daily operations is licensed from third
parties and thus may not be available to CA in the future, which has the
potential to delay product development and production; CA's credit ratings
have been downgraded and could be downgraded further which would require CA to
pay additional interest under its credit agreement and could adversely affect
CA's ability to borrow; CA has a significant amount of debt; the failure to
protect CA's intellectual property rights would weaken its competitive
position; CA may become dependent upon large transactions; general economic
conditions may lead CA's customers to delay or forgo technology upgrades; the
market for some or all of CA's key product areas may not grow; third parties
could claim that CA's products infringe their intellectual property rights;
fluctuations in foreign currencies could result in translation losses; and the
other factors described in CA's current report on form 10-Q. CA assumes no
obligation to update the information in this communication, except as
otherwise required by law. Readers are cautioned not to place undue reliance
on these forward-looking statements that speak only as of the date hereof.

This press release is for informational purposes only and is not an offer
to buy or the solicitation of an offer to sell any shares of CA common stock.
CA has not yet commenced the tender offer described herein. On the
commencement date of the tender offer, an offer to purchase, a letter of
transmittal and related documents will be filed with the Securities and
Exchange Commission, will be mailed to stockholders of record and will also be
made available for distribution to beneficial owners of shares of common
stock. The solicitation of offers to buy shares of CA common stock will only
be made pursuant to the offer to purchase, the letter of transmittal and
related documents. When they are available, stockholders should read those
materials carefully because they will contain important information, including
the various terms of, and conditions to, the tender offer. When they are
available, stockholders will be able to obtain the offer to purchase, the
letter of transmittal and related documents without charge from the Securities
and Exchange Commission's website at www.sec.gov or from the information agent
Innisfree M&A Incorporated at 877-750-9497 (U.S. & Canada) 412-232-3651 (other
countries) or 212-750-5833 (Banks & Brokers). Stockholders are urged to read
carefully those materials when they become available prior to making any
decisions with respect to the tender offer.

(1) Net income and the number of shares used in the computation of diluted
GAAP EPS for the three month periods ended June 30, 2006 and 2005 have
been adjusted to reflect the dilutive impact of the Company's 1.625
percent Convertible Senior Notes.

DECREASE IN CASH AND CASH EQUIVALENTS BEFORE
EFFECT OF EXCHANGE RATE CHANGES ON CASH (367) (991)
Effect of exchange rate changes on cash 36 (62)
DECREASE IN CASH AND CASH EQUIVALENTS (331) (1,053)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 1,831 2,829
CASH AND CASH EQUIVALENTS AT END OF PERIOD $1,500 $1,776

(1) Certain balances have been reclassified to conform to current period
presentation.

(1) Net operating income and the number of shares used in the computation
of diluted operating EPS for the three month periods ended June 30,
2006 and 2005 have been adjusted to reflect the dilutive impact of the
Company's 1.625 percent Convertible Senior Notes.

Refer to the discussion of Non-GAAP measures included in the accompanying
press release for additional information.

(1) The Company added that its annual outlook for 2007 has not been
adjusted to reflect the $2 billion repurchase plan. This outlook also
assumes that the Company will take steps to achieve certain cost
savings, including the recently announced fiscal year 2007
restructuring plan. These steps will have related non-operating costs
that will have a negative effect on GAAP earnings per share and cash
generated from operating activities, which have not been reflected in
the above outlook as the timing of such costs has not yet been
determined.

(2) The non-GAAP effective tax rate adjustment for the three months ended
June 30, 2006 reflects certain international tax benefits realized for
GAAP purposes. The non-GAAP effective tax rate adjustment for the
three months ended June 30, 2005 reflects certain tax savings on the
repatriation of cash from international locations realized for GAAP
purposes.